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Expert Insights from Dr. Alex Hope
We're proud to have Dr. Alex Hope, Deputy Faculty Pro Vice-Chancellor at Northumbria University’s Faculty of Business and Law, as our expert correspondent on ESG and sustainability. A recognised leader in corporate ethics, responsible leadership, and sustainable business strategy, Dr. Hope brings a wealth of expertise to NRG, and we're delighted to share a series of guest blogs featuring his insights.
In this first instalment, he explores how businesses can move beyond a compliance-driven approach to embed sustainability into their culture. Drawing on academic research, real-world case studies, and his extensive consultancy experience, Dr. Hope provides practical strategies to help organisations turn ESG from a regulatory requirement into a driver of long-term success.
Read on to discover why responsible business is more than just a moral obligation - it’s a strategic advantage.
The Future of Responsible Business: From Compliance to Culture
Corporate responsibility is no longer just about ticking compliance boxes or publishing glossy CSR reports. In an era marked by climate change, social inequality, and growing stakeholder expectations, businesses must go beyond regulatory adherence and embed sustainability into their core strategy and culture. This article explores why responsible business is not just a moral imperative but a strategic advantage, offering insights into how leading companies are shifting from compliance-driven models to culture-driven sustainability. Drawing on academic research, real-world case studies, and my own experience in consultancy and teaching at Northumbria University, this piece will provide business leaders with actionable strategies to drive long-term resilience, innovation, and profitability. Whether you are a CEO, sustainability professional, or business strategist, this article will help you understand the evolving landscape of responsible business and how to position your organisation for success.
The expectations around responsible business are shifting rapidly, with businesses facing a landscape of growing complexity. Regulation is becoming stricter, investors are more demanding, and consumers are making purchasing decisions based on ethical considerations. At the same time, businesses are grappling with climate risk, supply chain vulnerabilities, and increasing scrutiny over their social and environmental impact.
One of the most significant developments in recent years is the expansion of sustainability-related regulations. The EU’s Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD) require companies to disclose sustainability risks and mitigate human rights and environmental impacts across their value chains (European Commission, 2022; 2023). These directives extend beyond the EU, influencing global supply chains. A UK-based manufacturer supplying a European retailer, for example, must now meet these benchmarks or risk losing business.
My own forthcoming research undertaken with a recent doctoral student examines how Irish multinationals are adapting to these regulations, particularly in governance, reporting, and supply chain management. Early findings indicate that while the directives enhance transparency and accountability, they also introduce compliance challenges. Many firms are strengthening internal ESG structures and investing in data management systems to navigate these new requirements effectively. Our study highlights the ways in which businesses operating across jurisdictions are adapting to these evolving expectations.
Beyond regulation, the expectations of investors and consumers are transforming how businesses operate. Investment in ESG funds has surged, with global ESG assets expected to exceed $50 trillion by 2025 (World Economic Forum, 2023). Meanwhile, many consumers - particularly millennials and Gen Z - prioritise sustainability and ethical sourcing when making purchasing decisions (Jope, 2019). Companies failing to align with these expectations risk falling behind in a marketplace where brand reputation is as valuable as the products they sell.
Perhaps the most pressing challenge for business leaders, however, is integrating sustainability into a core strategy without undermining profitability. Research shows that companies embedding sustainability into decision-making outperform their peers financially. A landmark study by Eccles, Ioannou, and Serafeim (2014) found that high-sustainability companies - those that adopted robust environmental and social policies - significantly outperformed low-sustainability companies in stock market returns and financial results over an 18-year period. This research debunks the outdated myth that businesses must choose between “doing good” and doing well.
From Compliance to Strategy: Navigating the ESG Landscape
The answer lies in shifting from a compliance-driven approach to one that sees sustainability as a driver of competitive advantage. Businesses that embed sustainability into their strategic decision-making unlock efficiencies, reduce risk, and enhance brand value. Companies that treat ESG as a mere regulatory hurdle, on the other hand, often find themselves reacting to crises rather than shaping their future.
One of the most compelling examples of this shift is Marks & Spencer’s Plan A. Initially viewed as an expensive sustainability initiative, it soon became evident that embedding sustainability across operations was not just good for the planet - it was good for business. By 2011/12, the program had delivered a net benefit of £105 million, largely through efficiencies in energy use, waste reduction, and supply chain improvements (Marks & Spencer, 2022). What began as seemingly a costly investment turned into a profit centre, demonstrating that responsible business isn’t an expense; it’s an opportunity for innovation and financial gain.
Unilever provides another powerful case study. Under former CEO Paul Polman, the company transformed its approach by embedding sustainability into its brand strategy. The results were remarkable. By 2018, Unilever’s Sustainable Living brands - such as Dove, Ben & Jerry’s, and Lipton- were growing 69% faster than the rest of the company and contributing 75% of its total growth (Unilever, 2023). Far from being a niche effort, sustainability became Unilever’s primary engine of financial performance. The lesson is clear: when done well, responsible business isn’t just a moral obligation - it’s a growth strategy.
Practical Strategies for Building a Responsible Business
Achieving this level of integration requires a combination of leadership commitment, data-driven decision-making, and a willingness to innovate. At Newcastle Business School, we work with businesses of all sizes to explore how ESG can be embedded into operations. The most successful companies don’t just set sustainability targets - they align them with their financial and operational goals, ensuring that ESG principles drive value rather than exist in isolation.
One crucial aspect of this process is data. Companies that effectively integrate sustainability into decision-making rely on robust ESG metrics, allowing them to measure performance, identify risks, and track progress. The best firms use data analytics to optimize energy consumption, streamline supply chains, and assess the environmental impact of their operations (Task Force on Climate-related Financial Disclosures, 2021). Rather than treating ESG reporting as a box-ticking exercise, they use it to drive innovation and efficiency.
Leadership also plays a pivotal role in embedding sustainability into business culture. CEOs and senior executives set the tone, ensuring that ESG is not just a talking point but a fundamental part of corporate governance. Increasingly, we are seeing businesses link executive compensation to sustainability targets - an approach that ensures accountability at the highest levels. Companies like Anglian Water (2023) and Greggs have integrated sustainability KPIs into their executive bonus structure, reinforcing the idea that long-term business success depends on responsible practices. SMEs are also embracing this approach. Riverford Organic Farmers (2025), a UK-based employee-owned business, ties leadership compensation to sustainability outcomes, ensuring that environmental and ethical commitments remain central to its operations. This model demonstrates that businesses of all sizes can align financial incentives with long-term responsible business practices.
Collaboration is another critical factor in driving sustainability forward. Many of the biggest ESG challenges - such as climate change, resource scarcity, and social inequality - cannot be solved by one company alone. This is why cross-sector partnerships are so valuable. Last year I had the honour of working with Business in the Community (BITC) on their Green Skills Lab where I got to see first-hand how businesses, policymakers, and educators come together to develop solutions that bridge skill gaps in the green economy (Hope, 2024). By working collectively, businesses can accelerate progress and shape industry-wide standards that benefit everyone.
The Role of SMEs: Agility and Innovation in Responsible Business
While large corporations often dominate sustainability discussions, SMEs play a crucial role in driving responsible business practices. What they lack in scale, they make up for in agility and innovation. One example is Toast Ale (Toast Brewing, 2023) which has built a business around sustainability by turning surplus bread into craft beer. Not only does this tackle food waste, but it also aligns the brand with the growing demand for circular economy solutions. Another is Potts Print (2023), an independent printing, packaging, and direct mail company based in Cramlington, Northumberland. The company became the first Carbon Balanced printing company in the North of England in 2012. They implemented various eco-friendly practices, including waterless and alcohol-free printing, chemical-free platemaking, and the use of vegetable-based inks. Additionally, they prioritise recycling waste materials and sourcing paper from sustainable origins, reflecting their dedication to reducing environmental impact. Through creative, sustainable business models, SMEs are proving that responsible business is not just for global corporations - it’s for every enterprise that wants to remain relevant in a changing world.
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Conclusion: Embracing Sustainability as a Strategic Imperative
The transition from compliance-driven CSR to a culture of responsible business is no longer optional - it is essential for long-term success. Businesses that embed sustainability into their strategy gain competitive advantages through innovation, efficiency, and enhanced stakeholder trust. At Northumbria University, my research, teaching, and consultancy consistently reinforce that businesses integrating ESG into their DNA achieve greater resilience, financial performance, and industry leadership. The question for business leaders is no longer “Are we doing things right?” but “Are we doing the right things?” By addressing sustainability challenges, embracing best practices, and learning from real-world examples, businesses - both large corporations and SMEs - can navigate the evolving ESG landscape and build a more responsible, profitable, and future-ready enterprise.
About Dr. Alex Hope
Dr. Hope is a recognised expert in responsible business, corporate ethics, and sustainability. As Deputy Faculty Pro Vice-Chancellor at Northumbria University’s Faculty of Business and Law, he provides strategic leadership in embedding sustainability and ethical business practices into education and corporate strategy. His research and consultancy work focuses on ESG, energy policy, and sustainable leadership, helping businesses navigate the evolving regulatory landscape and stakeholder expectations.
References
Anglian Water. (2023). Sustainability. Anglian Water Services. https://www.anglianwater.co.uk/corporate/about-us/suppliers/resource-hub/sustainability/
Eccles, R.G., Ioannou, I. and Serafeim, G. (2014) ‘The impact of corporate sustainability on organisational processes and performance’, Management Science, 60(11), pp. 2835–2857. DOI: 10.1287/mnsc.2014.1984.
European Commission (2022) Corporate Sustainability Reporting Directive (CSRD): Proposal and Impact. Available at: https://ec.europa.eu/finance/csrd (Accessed: 10 March 2025).
European Commission (2023) Corporate Sustainability Due Diligence Directive (CSDDD): Legislative Overview. Available at: https://ec.europa.eu/sustainability/csddd (Accessed: 10 March 2025).
Hope, A. (2024). Navigating Towards a Just and Sustainable Future: Evaluating the Impact of the BITC Green Skills Lab. Business in the Community. https://researchportal.northumbria.ac.uk/files/180624584/Navigating_Towards_a_Just_and_Sustainable_Future.pdf
Jope, A. (2019) ‘Why brands with purpose grow’, Unilever Sustainability Report. Available at: https://www.unilever.com/sustainable-living/ (Accessed: 10 March 2025).
Marks & Spencer (2022) Plan A: How M&S is delivering sustainability in business strategy. Available at: https://corporate.marksandspencer.com/plan-a (Accessed: 10 March 2025).
Potts Print. (2023). Sustainability. https://www.potts.co.uk/downloads/Potts%20Print%20(UK)%20Carbon%20Reduction%20Plan.pdf
Riverford Organic Farmers. (2025). Employee Ownership. Riverford Organic Farmers. https://www.riverford.co.uk/ethics-and-ethos/employee-ownership
Task Force on Climate-related Financial Disclosures (TCFD) (2021) Final Report: Recommendations of the Task Force on Climate-related Financial Disclosures. Available at: https://www.fsb-tcfd.org/publications/ (Accessed: 10 March 2025).
Toast Brewing. (2023). Delicious craft beer brewed using surplus bread. Toast Brewing. https://www.toastbrewing.com/
Unilever (2023) Sustainable Living Plan Progress Report. Available at: https://www.unilever.com/ (Accessed: 10 March 2025).
World Economic Forum (WEF) (2023) The Future of ESG and Corporate Governance. Geneva: WEF. Available at: https://www.weforum.org/reports (Accessed: 10 March 2025).